A Health Reimbursement Account (HRA) is an employer-funded account that reimburses employees tax-free for qualified medical expenses, often paired with high-deductible health plans.
- What is a Health Reimbursement Account (HRA)?
Answer: It is an employer-funded account reimbursing medical expenses tax-free. - What expenses are covered?
Answer: Expenses include deductibles, copays, and some over-the-counter drugs. - Who funds an HRA?
Answer: The employer fully funds it; employees cannot contribute. - What are the benefits for employees?
Answer: It reduces out-of-pocket costs and offers tax savings. - How is it administered?
Answer: It is managed through HR or a third-party administrator.
